Journal of Convex Analysis 12 (2005), No. 2, 465--476
Copyright Heldermann Verlag 2005
Boundary Behaviour of Equilibria for Linear Exchange Economies
Jean-Marc Bonnisseau
CERMSEM, Université de Paris 1, 106-112 Boulevard de l'Hôpital, 75647 Paris Cedex 13, France
jmbonni@univ-paris1.fr
Michael Florig
CERMSEM, Université de Paris 1, 106-112 Boulevard de l'Hôpital, 75647 Paris Cedex 13, France
florig@univ-paris1.fr
We study the Walras equilibrium price function of a linear exchange economy. We show that it is locally Lipschitz with respect to utility functions and initial endowments on the relative interior of the set of parameters where the price is unique. We also prove that it is never locally Lipschitz on the boundary. This extend previous result of J. M. Bonnisseau, M. Florig and A. Jofré [J. Optimization Theory Applications 109 (2001) 237--263, 264--288].
Keywords: Walras equilibrium, linear utility functions, sensitivity, Lipschitz.
MSC: 90C31; 91B42, 91B50
[ Fulltext-pdf (330 KB)] for subscribers only.